SA government asked to defend $1.8b desal plant

October 5, 2012 — 7.42am

South Australia's government is facing calls to explain why its new $1.8 billion desalination "white elephant" is to be mothballed, possibly until the next drought.

The desalination plant at Port Stanvac may be left in "standby mode" while the city is able to rely on cheaper water from the River Murray and local reservoirs, SA Water chief John Ringham announced on Thursday.

"The Adelaide desalination plant is South Australia's insurance policy against future droughts and provides a flexible, climate independent water source, so we will continue to maintain it to a level where it can be switched on when we need it," Mr Ringham said in a statement.

The desalination plant was proposed by the Labor government in a move to match a policy from the Liberal opposition at a time when South Australia, and much of eastern Australia, was in the grip of a severe drought.

Opposition Leader Isobel Redmond said on Thursday the state government had bungled the project from the start.

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Upper house Greens MP Mark Parnell described the decision to leave the plant on standby as "an absolute farce".

"Taxpayers have been forced to pay for a hyper-expensive white elephant that will now slowly rust while we continue to drain the Murray," Mr Parnell said.

Federal SA MP Simon Birmingham said it wasn't just state taxpayers who deserved an explanation, because federal Labor had pumped $328 million into the plant, including $228 million to expand it.

The plant was initially planned to produce up to 50 gigalitres a year, but its capacity was later doubled to 100gl with extra federal government funding.

"All Australians deserve to know why this grotesque cash splash should not now be considered just another example of Labor waste and mismanagement alongside pink batts, school halls and green loans," the Liberal senator said in a statement.

Mr Ringham said SA Water was anticipating the desalination plant may not need to be operated in the upcoming regulatory period after the completion of its 24-month warranty.

The regulatory period is scheduled to run from July 1, 2013 to June 30, 2016 while the warranty period will begin next year.